Brussels ready to retaliate against Trump’s tariffs

Gary Cohn, left, stepped down as President Trump’s economic adviser in light of his tariff threatsSaul Loeb/AFP/Getty Images

Donald Trump and the European Union have exchanged warning shots as world markets brace for a bruising trade war.

The resignation last night of Gary Cohn, Mr Trump’s chief economic adviser, appeared to signal the president’s determination to impose steep tariffs on imported steel and aluminium.

Mr Trump is understood to have summoned Mr Cohn, a former Goldman Sachs banker and the most influential supporter of free-trade within the Trump administration, to the Oval Office on Tuesday to demand his support on the tariffs plan. Mr Cohn refused to drop his objections and the White House announced his resignation hours later.

Even as Mr Trump’s staff were scrambling to announce Mr Cohn’s departure, the president denied that the West Wing was tumbling into chaos. “It’s…

Want to read more?

Subscribe now and get unlimited digital access on web and our smartphone and tablet apps, free for your first month.